The old export-led model in EM Asia may now be fractured with domestic demand drivers, including financial conditions, playing a more significant role than external demand, notes JPMorgan.
Jahangir Aziz and Sin Beng Ong of JPMorgan in their July 2, 2015 research note titled: “EM Asia: Alice doesn’t live here anymore” point out that falling exports to the EM Asia region and other economies led the decline in overall exports.
Disappointing two quarters at EM Asia
According to the JPMorgan analysts, EM Asia’s GDP growth averaged only 5.2% q/q saar, 1.2%-pts lower than the 6.3% average of the last three years, which in turn, was markedly lower than the 9.3% pre-crisis average:
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